Here Are The Facts

Higher prices seem imminent!
The market has spent the last few days meandering around and not
showing much of anything. On 11/3, we saw a nice higher
volume rally only to be conflicted by a
not-so-nice even higher
volume decline the next day. Fortunately,
we still have not seen any blatant
distribution, or professional selling to worry about in our leading index: the
NASDAQ.

Leading stocks have
been
very strong lately, but they are continuously
rotating between rally mode and correction mode. The fact
is we have solid, growth leadership with new
names setting new highs everyday.
Sandisk
(
SNDK |
Quote |
Chart |
News |
PowerRating) is an
example of a stock I have mentioned in this
column. If you have
followed it the past couple of weeks, you saw it attempt to break through
81.75 and fail. It has subsequently corrected and then
burst to new highs.

At this point, it is
important to stay in tune with the market as well as stocks that are setting
up to break out. The market is not offering as many fresh
breakouts right now, but as the strength continues, names like
Aeropostale
(
ARO |
Quote |
Chart |
News |
PowerRating) find support at their
50-day moving averages
and power higher.

Enjoy your weekend.

Tim Truebenbach

timt@tradingmarkets.com